Network marketing: The ultimate in international distribution?

Abstract

There is little serious material written about Network Marketing in general, and almost none on the subject of its suitability as a channel of distribution in international markets. Yet there is now some hard data from a normally secretive industry which enable Network Marketing's claims in respect of its universal appeal to be assessed critically. Using information included in Amway's recent Pacific Rim flotations, this article assesses Network Marketing against six strategic criteria for channel management. It concludes that although it may have certain strengths in particular markets, Network Marketing is by no means a universal panacea, and that to succeed, companies must give equal attention to other aspects of marketing management.